. In tonights Economy Rockford report a local financial expert details new initiatives for retirement reform.
23 news financial expert Scott Laue says to lessen the burden on social security in the future, t his new retirement reform plan pushes for all employers to allow automatic direct deposit into employees' retirement accounts or IRA's.
It also includes an expanded tax credit which would match 50 percent of the first one thousand dollars of our retirement contributions. Laue says this could amount to a bigger tax refund for many of us.
"Currently for those folks who are married filing jointly and their adjusted gross income is less than $55,000 those folks are eligible. In fact. what he is also proposing is to make it a refundable credit meaning if you have no tax liability you would still get this refund depending upon what your dollar amount is."
We can choose to opt out of an automatic IRA, but Laue says if we don't know we are signed up we could face penalties if we take our money out early.
The plan still has to be passed by Congress.